Switching Save or Cost Chart

Description

This calculator helps determine whether switching to a new loan is the right option for you and it analyses three scenarios (1) not switching and keep repaying the currently loan (2) switch to a new loan and make the minimum repayment or (3) switch to a new loan and keep current and higher repayment if possible.

Assumptions

Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, the interest compounding frequency may not be the same as the repayment frequency.

It is assumed that a year consists of 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.

No rounding is done throughout the calculation, whereas repayments are rounded to at least the nearest cent in practice.

This calculator does not take into account some loan features such as redraw facilities and offset accounts etc.